Asking for analysis on global situation in Strait of Hormuz and US allies' efforts to help ships get through.
Speaker1
Fred Kempe
Administration cannot cut short military campaign against Iran without losing historic opportunity to degrade Iran's capabilities.
Fred Kempe
Cost of oil and US politics weigh against continued campaign, forcing administration to send market reassurance signals.
Fred Kempe
Strait of Hormuz situation: ships not going through due to perceived high risk, not formal closure.
Fred Kempe
Every day Strait is effectively closed adds $3-5 to barrel price; 6-week closure could reach $150/barrel.
Fred Kempe
Economics/geo-economics more important than geopolitics currently; will dictate whether US can continue 3+ week campaign.
Brent down 2% but still above $101/barrel; US might succeed in getting ships through.
Speaker1
Fred Kempe
US eroding Iran's disruption capability daily through military strikes.
Fred Kempe
Main issue is ship owners' risk perception, not actual physical attacks.
Fred Kempe
Loosening Russian oil sanctions puts money in Russian pockets to escalate Ukraine war.